We open a bar. Part 1

The restaurant business is quite a profitable business because, despite the large number of catering establishments, finding a good bar is not easy either in the capital or in the Russian outback. In addition, in Moscow alone, about 250 public catering establishments close every year. This field of activity is always characterized by a high turnover of personnel, which is why newcomers are always given the green light.

Basic steps.

So, one morning you woke up and realized that you were ready to get into the bar business and invest your free $100 - $200 thousand in your establishment. Why not. Moreover, when opening a bar, the risk is much lower than when opening a restaurant:

• less fixed assets (costs for premises and equipment);

• losses associated with storing products are minimal;

• bars have a small staff, which allows better control over the quality of service.

But first you need to decide which way you will go.

The first way. Develop a concept for a bar, determine the circle of people you see as your visitors (target group), then outline the places where they “live” (shopping area) and look for free space there suitable for a bar. You may be lucky and find the space for your dreams, but this path may be either long or expensive.

The second way is more realistic, in which you start from the intended location of the future establishment, then study the target audience and, finally, decide on the concept of the establishment, based on the data you already have about the potential client.

So, let's look at the main steps.

Step one

. Studying offers for rent (or sale) of premises suitable for a bar.

What to look for?

The ideal option is the first floor of a non-residential building. A bar in the basement will not only scare away part of the public, but will also provide you with problems with sewerage and air conditioning for a long time. Penthouse bar is only available in hotels and shopping malls.

When choosing a room, you should especially pay attention to the following aspects:

• availability and quality of utilities;

• retention of residual rights for you, as the new owner;

• the rental period must be sufficient to not only return the investment, but also generate income;

• accessibility and safety of the entrance and approach;

• When assessing and choosing the size of a room, you should count on success and the fact that you will need space to implement new ideas.

Step two

Study of the shopping area to identify target groups.

You must understand who your potential visitors are.

You need to study residential buildings, cars parked at the entrances, the presence of offices and the level of companies. Study the streams of people flowing past your future bar in the morning and evening. Estimate the prevailing age of these people, how they dress. Visit drinking establishments in the area, understand what makes them stand out and memorable, evaluate occupancy, price level and service.

The more accurately you decide on the target group - its wealth, social status, range of interests and preferences, the greater the chances that your next step will be correct.

Step three

Development of a bar concept.

The concept of the bar can be reflected in the interior, the range of the bar, the music, the uniform of the staff, in a word - in everything. It’s ideal when even the name of the bar is conceptual.

But it also has an additional burden - it must be addressed to people from the target group, and inform them that this is an institution for them, for their level of income.

Knowing this level will also allow you to predict the average bill, and this, in turn, will allow you to select a suitable assortment, determine the price level and costs for the interior.

It is very important to design differences, or, more simply, “chips.” The main task is to surprise in a good way, provoking a desire to tell friends and acquaintances about what they saw.

Step four

Cost calculation and cash flow planning.

All costs for opening a bar and its operation are divided into 3 groups: fixed assets, fixed and variable expenses of the enterprise.

It is necessary to allocate funds for renting (or purchasing) premises, supplying missing communications, for repairs and decoration of premises, construction of a bar counter, purchase of furniture, equipment and utensils.

Certain funds will be required to obtain permits and organize information support campaigns.

It is necessary to stock up on alcohol and food for the first two weeks of work and allocate funds to pay wages.

The main task at the starting stage is to minimize costs, i.e. do not make any unreasonable expenses. But in the future it is necessary to strive to minimize working capital.

Step five

Stock upa minimum of economic knowledge.

This knowledge will help a novice businessman calculate the break-even point, the percentage of profitability and outline the payback period. Not being able to competently assess the state of your business is a surefire path to closure. Conversely, the ability to calculate, control and achieve a certain level of profitability will help you attract investors after some time, and this, as we know, is the optimal way to expand your business and rise to a higher financial market.

Step six

Development of optimal service and disciplinary control schemes that eliminate theft.

Where these schemes are not worked out to the smallest detail, or where there is no constant control over their implementation, the scale of theft can reach 50% of revenue. This is the case when bartenders for some reason continue to work, receiving from your hands a salary of 5-6 thousand rubles, but in fact they “earn” more than the investor.
It should be recalled that the most common reason for closure is insufficient profitability of the establishment.

Step seven

Development of salary and staff motivation systems.

The purpose of these systems is to form a team of professionals who accept your value system. Before developing these systems you need to:
achieve the most accurate implementation of the sixth point, i.e. eliminate the most popular motivation - the opportunity to steal;
remember that your business is the most man-intensive and that unmotivated staff can easily scare away the entire public.

Step eight

Sales organization.

The following options exist for this:

• it is necessary to conduct initial and supporting staff training aimed at acquiring speed work skills and developing the ability to offer and sell;

• organize the work of bartenders in such a way as to eliminate underfilling and payment without presenting a receipt;

• create an attractive assortment that takes into account the preferences of your visitors;

• stimulate sales by offering new alcoholic products, original presentation and introducing original cocktail recipes of stable quality to the bar menu.

Step nine

Delegation of powers.

When starting a bar, the owner must do all the work himself or, at a minimum, take part in it: from organizing warehouse accounting to developing a cocktail menu. You can begin to delegate authority only after each business process has been optimized. In this case, you will immediately notice where the failure occurs and understand its cause.

Naturally, you will continue to retain some part of the work related to maintaining the life of the bar and managing it, for example:

• working with suppliers, personally seeking from them the most favorable delivery conditions;

• developing a promotion strategy and organizing information support campaigns;

• control of economic indicators.

You should delegate authority only to trained personnel who can do the job as well as you. Consider the motivation of your management personnel. A percentage of the profit is an ideal tool for motivating the owner. In this case, your managing manager will fight with you for every ruble of profit.